Discourse that allows us to express a wide range of ideas, opinions, and analysis that can be used as an opportunity to critically examine and observe what our experience means to us beyond the given social/cultural contexts and norms that are provided us.

Tuesday, October 26, 2010

The Failure of the Obama Administration To Hold Wall Street and the Banks Fully Accountable and Its Dire Consequences

Frank Rich typically gets it 100% right in his analysis below--as truly depressing as it is...BTW: Chuleenan and I saw the incredible documentary "Inside Job" last sunday. If you get a chance please go see this movie immediately! The whole fascinating and equally horrific story about Wall Street, the banks, the corporations, and the Obama administration is brilliantly detailed in a very dynamic and extremely informative film by the genius director/writer Charles Ferguson...

Kofi

October 23, 2010

What Happened to Change We Can Believe In?By FRANK RICHNew York Times

PRESIDENT Obama, the Rodney Dangerfield of 2010, gets no respect for averting another Great Depression, for saving 3.3 million jobs with stimulus spending, or for salvaging GM and Chrysler from the junkyard. And none of these good deeds, no matter how substantial, will go unpunished if the projected Democratic bloodbath materializes on Election Day. Some are even going unremembered. For Obama, the ultimate indignity is the Times/CBS News poll in September showing that only 8 percent of Americans know that he gave 95 percent of American taxpayers a tax cut.

The reasons for his failure to reap credit for any economic accomplishments are a catechism by now: the dark cloud cast by undiminished unemployment, the relentless disinformation campaign of his political opponents, and the White House’s surprising ineptitude at selling its own achievements. But the most relentless drag on a chief executive who promised change we can believe in is even more ominous. It’s the country’s fatalistic sense that the stacked economic order that gave us the Great Recession remains not just in place but more entrenched and powerful than ever.

No matter how much Obama talks about his “tough” new financial regulatory reforms or offers rote condemnations of Wall Street greed, few believe there’s been real change. That’s not just because so many have lost their jobs, their savings and their homes. It’s also because so many know that the loftiest perpetrators of this national devastation got get-out-of-jail-free cards, that too-big-to-fail banks have grown bigger and that the rich are still the only Americans getting richer.

This intractable status quo is being rubbed in our faces daily during the pre-election sprint by revelations of the latest banking industry outrage, its disregard for the rule of law as it cut every corner to process an avalanche of foreclosures. Clearly, these financial institutions have learned nothing in the few years since their contempt for fiscal and legal niceties led them to peddle these predatory mortgages (and the reckless financial “products” concocted from them) in the first place. And why should they have learned anything? They’ve often been rewarded, not punished, for bad behavior.

The latest example is Angelo Mozilo, the former chief executive of Countrywide and the godfather of subprime mortgages. On the eve of his trial 10 days ago, he settled Securities and Exchange Commission charges for $67.5 million, $20 million of which will be footed by what remains of Countrywide in its present iteration at Bank of America. Even if he paid the whole sum himself, it would still be a small fraction of the $521 million he collected in compensation as he pursued his gambling spree from 2000 until 2008.

A particularly egregious chunk of that take was the $140 million he pocketed by dumping Countrywide shares in 2006-7. It was a chapter right out of Kenneth Lay’s Enron playbook: Mozilo reassured shareholders that all was peachy even as his private e-mail was awash in panic over the “toxic” mortgages bringing Countrywide (and the country) to ruin. Lay, at least, was convicted by a jury and destined to decades in the slammer before his death.

The much acclaimed new documentary about the global economic meltdown, “Inside Job,” has it right. As its narrator, Matt Damon, intones, our country has been robbed by insiders who “destroyed their own companies and plunged the world into crisis” — and then “walked away from the wreckage with their fortunes intact.” These insiders include Dick Fuld and four other executives at Lehman Brothers who “got to keep all the money” (more than $1 billion) after Lehman went bankrupt. And of course Robert Rubin, who encouraged Citigroup to step up its investment in high-risk bets like Countrywide’s mortgage-backed securities. Rubin, now back as a rainmaker on Wall Street, collected more than $115million in compensation during roughly the same period Mozilo “earned” his half a billion. Citi, which required a $45 billion taxpayers’ bailout, recently secured its own slap-on-the-wrist S.E.C. settlement — at $75 million, less than Rubin’s earnings and less than its 2003 penalty ($101 million) for its role in hiding Enron profits.

It should pain the White House that its departing economic guru, the Rubin protégé Lawrence Summers, is an even bigger heavy in “Inside Job” than in the hit movie of election season, “The Social Network.” Summers — like the former Goldman Sachs chief executive and Bush Treasury secretary Hank Paulson — is portrayed as just the latest in a procession of policy makers who keep rotating in and out of government and the financial industry, almost always to that industry’s advantage. As the star economist Nouriel Roubini tells the filmmaker, Charles Ferguson, the financial sector on Wall Street has “step by step captured the political system” on “the Democratic and the Republican side” alike. But it would be wrong to single out Summers or any individual official for the Obama administration’s image of being lax in pursuing finance’s bad actors. This tone is set at the top.

Asked in “Inside Job” why there’s been no systematic investigation of the 2008 crash, Roubini answers: “Because then you’d find the culprits.” With the aid of the “Manhattan Madam” (and current stunt New York gubernatorial candidate) Kristin Davis, the film also asks why federal prosecutors who were “perfectly happy to use Eliot Spitzer’s personal vices to force him to resign in 2008” have not used rampant sex-and-drug trade on Wall Street as a tool for flipping witnesses to pursue the culprits behind the financial crimes that devastated the nation.

The Obama administration seems not to have a prosecutorial gene. It’s shy about calling a fraud a fraud when it occurs in high finance. This caution was exemplified most recently by the secretary of housing and urban development, Shaun Donovan, whose response to the public outcry over the banks’ foreclosure shenanigans was to take to The Huffington Post last weekend. “The notion that many of the very same institutions that helped cause this housing crisis may well be making it worse is not only frustrating — it’s shameful,” he wrote.

Well, yes! Obama couldn’t have said it more eloquently himself. But with all due respect to Secretary Donovan’s blogging finesse, he wasn’t promising action. He was just stroking the liberal base while the administration once again punted. In our new banking scandal, as in those before it, attorneys general in the states, where many pension funds were decimated by Wall Street Ponzi schemes, are pursuing the crimes Washington has not. The largest bill of reparations paid out by Bank of America for Countrywide’s deceptive mortgage practices — $8.4 billion — was to settle a suit by 11 state attorneys general on the warpath.

Since Obama has neither aggressively pursued the crash’s con men nor compellingly explained how they gamed the system, he sometimes looks as if he’s fronting for the industry even if he’s not. Voters are not only failing to give the White House credit for its economic successes but finding it guilty of transgressions it didn’t commit. The opposition is more than happy to pump up that confusion. When Mitch McConnell appeared on ABC’s “This Week” last month, he typically railed against the “extreme” government of “the last year and a half,” citing its takeover of banks as his first example. That this was utter fiction — the takeover took place two years ago, before Obama was president, with McConnell voting for it — went unchallenged by his questioner, Christiane Amanpour, and probably by many viewers inured to this big lie.

The real tragedy here, though, is not whatever happens in midterm elections. It’s the long-term prognosis for America. The obscene income inequality bequeathed by the three-decade rise of the financial industry has societal consequences graver than even the fundamental economic unfairness. When we reward financial engineers infinitely more than actual engineers, we “lure our most talented graduates to the largely unproductive chase” for Wall Street riches, as the economist Robert H. Frank wrote in The Times last weekend. Worse, Frank added, the continued squeeze on the middle class leads to a wholesale decline in the quality of American life — from more bankruptcy filings and divorces to a collapse in public services, whether road repair or education, that taxpayers will no longer support.

Even as the G.O.P. benefits from unlimited corporate campaign money, it’s pulling off the remarkable feat of persuading a large swath of anxious voters that it will lead a populist charge against the rulers of our economic pyramid — the banks, energy companies, insurance giants and other special interests underwriting its own candidates. Should those forces prevail, an America that still hasn’t remotely recovered from the worst hard times in 70 years will end up handing over even more power to those who greased the skids.

We can blame much of this turn of events on the deep pockets of oil billionaires like the Koch brothers and on the Supreme Court’s Citizens United decision, which freed corporations to try to buy any election they choose. But the Obama White House is hardly innocent. Its failure to hold the bust’s malefactors accountable has helped turn what should have been a clear-cut choice on Nov. 2 into a blurry contest between the party of big corporations and the party of business as usual.

Malcolm X (1925-1965)

"I'm for truth, no matter who tells it. I'm for justice, no matter who it's for or against."

W.E.B. DuBois (1868-1963)

"There is but one coward on earth, and that is the coward that dare not know."

Dr. Martin Luther King, Jr. (1929-1968)

"Change does not roll in on the wheels of inevitability, but comes through continuous struggle. And so we must straighten our backs and work for our freedom. A man can't ride you unless your back is bent. "

James Baldwin (1924-1987)

"Precisely at the point when you begin to develop a conscience you must find yourself at war with your society."

Aimé Césaire (1913-2008)

"A civilization that proves incapable of solving the problems it creates is a decadent civilization. A civilization that chooses to close its eyes to its most crucial problems is a stricken civilization. A civilization that uses its principles for trickery and deceit is a dying civilization."

Nina Simone (1933-2003)

"There's no other purpose, so far as I'm concerned, for us except to reflect the times, the situations around us and the things we're able to say through our art, the things that millions of people can't say. I think that's the function of an artist and, of course, those of us who are lucky leave a legacy so that when we're dead, we also live on. That's people like Billie Holiday and I hope that I will be that lucky, but meanwhile, the function, so far as I'm concerned, is to reflect the times, whatever that might be."

Amilcar Cabral (1924-1973)

"Always bear in mind that the people are not fighting for ideas, for the things in anyone's head. They are fighting to live better and in peace, to see their lives go forward, to guarantee the future of their children ....Hide nothing from the masses of our people. Tell no lies. Expose lies whenever they are told. Mask no difficulties, mistakes, failures. Claim no easy victories..." .

Angela Davis (b. 1944)

"The idea of freedom is inspiring. But what does it mean? If you are free in a political sense but have no food, what's that? The freedom to starve?”

Duke Ellington (1899-1974)

“Jazz is the freest musical expression we have yet seen. To me, then, jazz means simply freedom of musical speech! And it is precisely because of this freedom that so many varied forms of jazz exist. The important thing to remember, however, is that not one of these forms represents jazz by itself. Jazz simply means the freedom to have many forms.”

Amiri Baraka (1934-2014)

"Thought is more important than art. To revere art and have no understanding of the process that forces it into existence, is finally not even to understand what art is."

Frederick Douglass (1817-1895)

"Power concedes nothing without a demand. It never did and it never will. Find out just what any people will quietly submit to and you have found out the exact measure of injustice and wrong which will be imposed upon them, and these will continue till they are resisted with either words or blows, or both. The limits of tyrants are prescribed by the endurance of those whom they oppress.” --August 3, 1857

Cecil Taylor (b. 1929)

“Musical categories don’t mean anything unless we talk about the actual specific acts that people go through to make music, how one speaks, dances, dresses, moves, thinks, makes love...all these things. We begin with a sound and then say, what is the function of that sound, what is determining the procedures of that sound? Then we can talk about how it motivates or regenerates itself, and that’s where we have tradition.”

Ella Baker (1903-1986)

"Strong people don't need strong leaders"

Paul Robeson (1898-1976)

"The artist must take sides, He must elect to fight for freedom or slavery, I had no alternative"

John Coltrane (1926-1967)

"I want to be a force for real good. In other words, I know there are bad forces. I know that there are forces out here that bring suffering to others and misery to the world, but I want to be the opposite force. I want to be the force which is truly for good."

Miles Davis (1926-1991)

"Jazz is the big brother of Revolution. Revolution follows it around."

C.L.R. James (1901-1989)

"All development takes place by means of self-movement, not organization by external forces. It is within the organism itself (i.e. within the society) that there must be realized new motives, new possibilities."

Frantz Fanon (1925-1961)

"Now, political education means opening minds, awakening them, and allowing the birth of their intelligence as [Aime] Cesaire said, it is 'to invent souls.' To educate the masses politically does not mean, cannot mean, making a political speech. What it means is to try, relentlessly and passionately, to teach the masses that everything depends on them."

Edward Said (1935-2003)

“I take criticism so seriously as to believe that, even in the midst of a battle in which one is unmistakably on one side against another, there should be criticism, because there must be critical consciousness if there are to be issues, problems, values, even lives to be fought for."

Antonio Gramsci (1891-1937)

“The challenge of modernity is to live without illusions and without becoming disillusioned. There must be pessimism of the intellect and optimism of the will.”

Susan Sontag (1933-2004)

"Do stuff. Be clenched, curious. Not﻿ waiting for inspiration’s shove or society’s kiss on your forehead. Pay attention. It’s all about paying attention. Attention is vitality. It connects you with others. It makes you eager. Stay eager."

Editor's Bio

Kofi Natambu, editor of The Panopticon Review, is a writer, poet, cultural critic, and political journalist whose poetry, essays, criticism, reviews, and journalism have appeared in many literary magazines, journals, newspapers, and anthologies. He is the author of a biography MALCOLM X: His Life & Work (Alpha Books) and two books of poetry: THE MELODY NEVER STOPS (Past Tents Press) and INTERVALS (Post Aesthetic Press). He was the founder and editor of SOLID GROUND: A NEW WORLD JOURNAL, a national quarterly magazine of the arts, culture, and politics and the editor of a literary anthology NOSTALGIA FOR THE PRESENT (Post Aesthetic Press). Natambu has read his work throughout the country and given many lectures and workshops at academic and arts institutions. He has taught American literature, literary theory and criticism, cultural history and criticism, film studies, political science, creative writing, philosophy, critical theory, and music history and criticism (Jazz, Blues, R&B, Hip Hop) at many universities and colleges. He was also a curator in the Education Department of Detroit’s Museum of African American History. Born in Detroit, Michigan, Natambu currently lives in Berkeley, California with his wife Chuleenan.